Tourism and development of economic corridors

Presentation

Regional Inception Workshop Sustainable Tourism Development in the Regional Economic Cooperation (CAREC) Region 1 Content

1 Fundamentals of regional cooperation in Tourism Development

2 Case of ABEC Joint Tourism Master Plan

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 2 Content

1 Fundamentals of regional cooperation in Tourism Development

2 Case of ABEC Joint Tourism Master Plan

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 3 Fundamentals of regional cooperation in Tourism Development

Why is it needed to work together in the ABEC region?

Most visited Core products and Complementary Improved assets markets products and markets tourism Improved City Ski experiences Culture Shopping More tourists City City break Sun & beach Religion More days Health & wellness Higher daily Issyk-Kul Business Adventure spending Nature Greater Karakol Hiking, biking, benefit Horse riding distribution

Best assets Concept of developing • Large investments of public and private are distributed regionally bundled assets in sources across the clusters to improve the reach of • Increased and cheaper air access region in both key markets and motivations for • Improved and faster road access between core countries visiting assets Working together reduces costs and increase the feasibility of projects

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 4 Content

1 Fundamentals of regional cooperation in Tourism Development

2 Case of ABEC Joint Tourism Master Plan

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 5 Case of ABEC Joint Tourism Master Plan

Development Concept of the Join Tourism Master Plan …

ABEC Tourism Master Plan Area

Historical

Proposed silk road bypass: Shonzhy/ Charyn, Turgen, Almaty, Bishkek, Proposed silk road bypass: Silk road by- Shonzhy/ Charyn, Kegen, Typy, Issyk-Kul, Bishkek, Song-Kul pass circuit system

City Cluster and Suburban Cluster

Natural Area Cluster integrated network of Resort Cluster clusters Water Network Mountain Network Land Network Silk road Border with

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 6 Case of ABEC Joint Tourism Master Plan

… Focusing on major primary motivations of visit, segments, and target markets ….

Key segments Key Assets/ Clusters Target markets

▪ Business ▪ Almaty city ▪ Bishkek city ▪City break + ▪ Almaty area ▪ 1-day short trip ▪ Bishkek area ▪ Domestic ▪ Sun & beach ▪ Cholpon-Ata ▪ Regional CIS + ▪ PR China, S. Korea, ▪ Recreation ▪ Issyk-Kul lake UAE, India, Pakistan, Japan, ▪ Health and and EU Wellness ▪ Song-Kul ▪ Karakol ▪ Nature and ▪ Eastern Almaty region adventure ▪ Jambyl ▪ Culture

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 7 Case of ABEC Joint Tourism Master Plan

… built upon major foundation pillars, ….

▪ Major foundation pillars (principles) for tourism development: ✓ Preservation of nature as the main asset through: － functional spatial planning (regulation on where to build what) － prevention of environmental degradation (water quality of lakes and aquifers, sewage treatment and solid waste management), and － preservation of potential future assets (Karakol airport). ✓ Development of quality standards for the sector (accommodation rating, regarding quality of facilities, tour guides qualification, and branding) ✓ Preservation of cultural practices and buildings relevant for tourism

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 8 Case of ABEC Joint Tourism Master Plan

… main Development Drivers, …. ▪ To develop main tourism clusters (city, sub-urban, resort, natural, and cultural) with sub- plans including: ✓ zoning, ✓ tourism infrastructure, ✓ multi-lingual tourism information and signage, ✓ certified tour guides, and ✓ complementary services like (road support centres). ▪ The assets are embedded in the clusters with ✓ inter- and intra-cluster transport concepts, ✓ thematical and promotional specializations, ✓ clearly outlined target markets (China, UAE, Korea, EU, Russia); ✓ corresponding infrastructure (for example Chinese speaking guides, restaurants, and signage, or focus on health and wellness tourism around balneological assets, as PPP concessions). ▪ Integration in the region: circuits of regional experiences, facilitated by common visa regime, easy transportation modes, as well as regional branding, standards, and marketing to develop origin markets from more distant high-income countries Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 9 Case of ABEC Joint Tourism Master Plan

… developing key support projects, such as Improvement of access to the region, … ALA-ASB $ 139 $ 53 FRU-ASB $ 124 $ 81 ✓ Cheaper and increased air access: ALA-KHG $ 53 $ 49 －improve regulation, and airport management FRU-KHG $ 51 $ 78 to reduce ground costs per passenger. ALA-TAS $ 75 $ 112 －attract more airlines to be operate Bishkek, FRU-TAS $ 58 $ 139 ALA-DYU $ 82 $ 61 and develop of an air Hub in Almaty FRU-DYU $ 72 $ 87 －regional system of low-fee/cost airline model TSE-ALA $ 91 $ 31 Total airline costs (Pax) in central Asia (ex. SAS) FRU-TSE $ 90 $ 57 FRU-ALA $ 35 $ 61 Total ground costs －Possible next step: regional airport tariff & tax (pax) FRU-OSS $ 44 $ 68 coordination $ 0 $ 50 $ 100 $ 150 $ 200 $ 250 ✓ Faster road access: Air Traffic; thousand trips between NE Asia and ﹣Faster road trips between Almaty/Issyk-Kul/ Europe Karakol roads, to improve flows and CAGR = 2.9% investments. 9 762 ﹣Silk Road visa and ABEC tourism pass to CAGR = cross mountains 5 971 5.7% 11 142 ✓ Effective institutional framework: 4 342 ﹣Well structures, capacitated and funded 2013 2030 PR China/ Europe Other Asian/Europe Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 10 Case of ABEC Joint Tourism Master Plan key projects – Institutional improvement

▪ The vast majority of the identified investments in the master plan require reforms to be feasible/bankable. Only a small portion of those can be implemented without the need of prior reforms and/or strong political commitment, to be at a risk level that could be acceptable by private investors. ▪ Suggested single institution with mandates, powers, and incentives to: ✓ enforce preservation of natural and cultural assets ✓ conduct functional planning and inter-ministerial/agency coordination ✓ coordinate tourism asset development and cluster approach ✓ serve as a one-stop shop for investors to negotiate concession design, incentives (for example water concession or long-term exclusivity for certain areas), and monitor and enforce service obligations, environmental and social contractual obligations; ✓ generate revenues, with the goal of further capacitating the single agency/company and eventually setting up a tourism fund ✓ develop a system of certification for accommodation, hospitality and tour guides in combination with skill development

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 11 Case of ABEC Joint Tourism Master Plan

Suggested Immediate Actions:

• Enforce the existing laws in protecting the natural assets: － Examples: run inspections and oblige the owners of resorts to comply with the 300 m. construction from the shore to allow the building of a trail around Cholpon-Ata, in KYG; Have inspectors issuing fine ordinances to environmental offences in KAZ • Resolve the open-air coal mining in Kara-Keche (allow tunnel based only with high environmental standards); • Curb Almaty city pollution caused by road transport; • Implement the legal reforms and sector institutional framework; － Example: create a tourism coordination committee chaired by Prime Ministers while performing feasibility studies on the set-up of one centralized institution per country, well funded. • Implement aviation sector reform, air hub in Almaty, improved route network in Manas • Confirm investor requirements with world leading companies and conduct pre-feasibility studies, to conceptualize concession design － Example: define a package of priority high impact investments and work on an integrated support packaged with a development partner as honest broker in Turgen and Karakol

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 12 Case of ABEC Joint Tourism Master Plan

Key reforms required

• Legal reforms required to de-risk/facilitate foreign investors: ✓ Foreign property ownership aligned with international standards ✓ Passage rights for tourism activities, particularly trails ✓ Expropriation regulations (criteria for fair price, how & whom appraises, declaration of public interest) ✓ Law enforcement practices, fines and their collection, related to the environmental protection; ✓ Urban planning and construction permits’ regulations (colour, types of materials, size, demolition costs, etc.) ▪ PPP management: ✓ Refine scheme design; attraction process; contracting process; monitoring and enforcement procedures’; ✓ De-risking options on concessions with exclusivity (for example mineral drinking water concession, gaming etc.) ▪ Institutional framework: ✓ Consider only one agency with the following functions: (i) marketing, promotion, and statistics; (ii) funding and administration; (iii) regulatory, standards, quality, cadastre, compliance, skills and training (iv) planning, infrastructure, and product development. ▪ Reforms related to improved air access ✓ by improving regulatory capacity of the civil aviation authority, ✓ increase transparency of pricing, ✓ consider regional low cost airline (following a similar model to Scandinavian Airlines; ✓ protect Karakol airport for future air-route development Regional Inception Workshop ✓ DeclareSustainable Almaty Tourism Airport Development as national in the exception Central Asia Regionalin traffic Economic rights Cooperation (CAREC) Region 13 Appendix 1: Cluster Development Proposals

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 14 Cluster Development Suggestions

Almaty city: large untapped potential to develop further and should be used as catalyst to develop other tourism segments and products • Trade shows: local and regional • City break: all year round

Require • Fairground and multi-purpose convention facilities with international standards; • Implementation of the concept of a green and blue framework to connect each existing point of interest in a coherent network on a city scale. • Conditions for low priced luxury goods’ shopping experience.

Key actions

▪ Setting public transportation service up to serve components of the green and blue framework; ▪ Developing the walking and cycle paths network, Integrating and valorizing landscape and heritage; ▪ Increasing contact spots between elements of the framework to ensure better connectivity; ▪ Implementing pedestrianized riverbanks filled with outdoor seating areas, green space and children’s play areas which provide breathing space and visual relief in a compact environment; ▪ Develop car free, shopping only cluster of streets; ▪ Develop world class trade fair premisesRegional Inception with multi Workshop-purpose convention centre. Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 15 Cluster Development Suggestions

Almaty city: making it attractive for business and city break travellers, while enhancing the life quality of local residents.

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 16 Cluster Development Suggestions

Bishkek city: large untapped potential to develop further and should be used as catalyst to develop other tourism segments and products

Bishkek urban renewal turns to water and its green landscape • Trade shows: local and regional • City break: all year round

Al-Archa River Require Great Chuy Canal • Fairground facilities with international Erkindik standards; Avenue Jash Gvardiya • Implementation of the concept of a Boulevard Chuy Avenue green and blue framework to connect each existing point of interest in a coherent network on a city scale. Hippodrom e

Key actions

▪ Ensuring continuity of the existing green and blue network on a city scale (e.g. Chuy Avenue); ▪ Developing walking and cycle paths network for accessibility to interest points; ▪ Revitalizing rivers and canals to enhance the visual and physical connection of people and water; ▪ Exploring the recreational use of rivers and canals; ▪ Developing cultural and entertainment offer (theater, opera, shopping); ▪ Improving the quality (physical and visual) of the urban landscape; Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 17 Cluster Development Suggestions

Bishkek city: making it attractive for business and city break travellers, while enhancing the life quality of local residents.

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 18 Cluster Development Suggestions

Almaty area: to enable effective and full utilization of the resources of short trips from Almaty all-year-around, for domestic visitors and trip extensions of foreign tourists • 40-60 km short trips for 1-day activities, all-year-round • Complementary to business and city-break, to extend length of stay Require

• improving the quality and comfort of travels, diversifying the touristic offer and promotion of the region; • Connection between the assets Key actions

▪ Creating a cultural and rural corridor that makes use of cultural and rural assets of the area; ▪ Creating a natural corridor that makes use of environmental and alpine assets of the area (lake, mountain, skiing areas, trekking paths...); ▪ Developing the walking and cycling path networks which provide linkage between tourist assets and corridors; ▪ Creating new ski resorts that will enable to expand skiing area (e.g. Turgen Ski Resort).

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 19 Cluster Development Suggestions

Almaty area: connecting the existing assets to maximize its use all-year-round

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 20 Cluster Development Suggestions

Bishkek Region: to enable effective and full utilization of the resources of short trips from Bishkek all-year-around, for domestic visitors and trip extensions of foreign tourists Planning concept of the region of • 40-60 km short trips for 1-day Bishkek activities, all-year-round • Complementary to business and city-break, to extend length of stay

Require

• improving the quality and comfort of travels, diversifying the touristic offer and promotion of the region; • Connection between the assets

Key actions ▪ Creating a hillside trail linking all tourist spots amongst themselves; ▪ Developing walking and cycle paths network for accessibility to interest points with alternative to car; ▪ Basic facilities (toilets, rest areas & tourist information) at each entrance of secondary trail; ▪ Revitalizing the Chuy river and exploring the recreational use of it (rafting, canoeing, ...); ▪ Diversifying the activities proposed in the area to enlarge the tourist market (paragliding, hard-adventure activities…). Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 21 Cluster Development Suggestions

Bishkek area: connecting the existing assets to maximize its use all-year-round

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 22 Cluster Development Suggestions

Song-Kul Cluster: concept of pristine and untouched nature Song-Kul cluster • Develop and promote a unique and pristine untouched natural experience; Require

• High protection of the lake shoreland • Enforcement of environmental protection in the surroundings Key actions ▪ Introduction of nature-friendly pavement for lakeside road, and limitation of vehicle passages; ▪ Set eco-friendly toilet system, garbage collection and treatment, and sewage facilities; ▪ Maintenance and improvement of land usage control for better sustainability; ▪ Promotion through tourist information centers (environment protection actions and regulations; ▪ Prohibit the open air mining in Kara-Keche (allow tunnel based only with high environmentalRegional Inception standards). Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 23 Cluster Development Suggestions

Cholpon-Ata cluster: Sun, Beach, Recreational, soft adventure, and health tourism

Resort cluster • Improving the quality, diversity and complementarity of the supply;

Require

▪ Urban development planning priority must be the quality of infrastructure and the natural and landscape protection; ▪ Existing laws must be enforced in the lakeside shore

Key actions

▪ Developing walking and cycle paths’ network to connect all tourist attractions ▪ Limiting the development of the coastal area to create an open bank; ▪ Open public access to beaches and coastal area; ▪ Use the airport and the harbor as gateways; ▪ Developing an eco-resort in the inland region to maximize the value of the lake view; ▪ Integrating and valorizing landscape and heritage.

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 24 Cluster Development Suggestions

Cholpon-Ata cluster: Sun, Beach, recreational, soft adventure, and health tourism

Source: caliorniabeaches.com

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 25 Cluster Development Suggestions

Karakol cluster: Focus on adventure, sports, nature, culture, health and wellness

Networking of the Karakol cluster ▪ Improving the quality, diversity and complementarity of the supply; ▪ Improving accessibility ▪ Improving sustainability Require ▪ Regional planning must link all points of interest and assets, by creating a touristic chain with efficient spatial distribution of the tourism products ▪ Improved accessibility by road and improved border crossing procedures are urgent; ▪ Karakol airport must be protected for a future option Key actions

▪ Creating a road and walking and cycling trail network to link all tourist attractions with each other and different user groups, with support facilities, such as toilets, rest areas or tourist centers, every 15 km along the length of paths; ▪ Implementing transport stations that link both shores of Issyk-Kul and public transportation services; ▪ Implementing an Alpine Route with different entry points to create an interconnected mountain path network; ▪ Developing the agro-tourism sector in the region; ▪ Maintaining waterfront view corridors and its public access; ▪ Reduce travel time from Bishkek and Almaty; ▪ Landbank the Karakol airport area for futureRegional development Inception Workshop option Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 26 Cluster Development Suggestions

Karakol cluster: Focus on adventure, sports, nature, culture, health and wellness

Tourist facilities along national roads Water bus Mountain roads with appropriate drainage

Interpretive natural trails Hotel & Spa in mineral hotsprings

All-year-round ski resorts All-year-round activities

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 27 Cluster Development Suggestions

East Kazakhstan cluster: Focus on adventure, sports, nature, culture, health and wellness ▪ Improving the quality, diversity and complementarity of the supply; ▪ Improving accessibility ▪ Improving sustainability

Require

▪ Regional planning must link all points of interest and assets, by creating a touristic chain with efficient spatial distribution of the tourism products ▪ Improved accessibility by road and improved border crossing procedures are urgent.

Key actions

▪ Creating tourism destinations from a central gateway; ▪ Promoting the region by creating a network of multifunctional facilities that provide free parking spaces, toilets and regional and tourist information (cf. figure 6.3.3); ▪ Developing new tourism products and new activities such as golf, Nordic skiing or horse riding; ▪ Linking tourist attractions by developing walking and cycle paths network; ▪ Enhancing the accessibility of touristic spots by improving road conditions and infrastructure.

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 28 Cluster Development Suggestions

East Kazakhstan cluster: Focus on adventure, sports, nature, culture, health and wellness

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 29 Cluster Development Suggestions

Jambyl cluster: Focus on culture ▪ Improving the state and the condition of the assets; ★ Tole Bi To Almaty ▪ Improving accessibility and connectivity ▪ Improving sustainability and complementary Taraz Bishkek (historical services heritage city) Merki Require ★ ▪ to structurise historical heritages in the area LEGEND for the Heritage-based tourism purpose. This Touristic Core ★ structurizing includes follows; Major Touristic Area ✓ Historical and cultural heritage; Historical Silk Road Chain, Satellite ✓ Ancient Taraz, which is UNESCO World

Almaty / Bishkek Chain, Heritage Site; Satellite Rural Agritourism Field Key actions

▪ Reformulation of the linkage between the Historical, the New Silk road and the proposed bypasses through the following programs. ✓ Networking of confluence of two Silk roads and bypass with connecting facilities. The information center, roadside service facilities and heritage spots will be utilized for the network; ✓ Local villages along the historical road can be integrated for the touristic network. Their productive activities (e.g. agriculture, rural product) can be utilized for touristic activities.

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 30 Cluster Development Suggestions

Jambyl cluster: Focus on culture

Regional Inception Workshop Sustainable Tourism Development in the Central Asia Regional Economic Cooperation (CAREC) Region 31